Shiba Inu: Shibarium Transactions Decline Massively: Will This Affect SHIB?

• Shibarium, the layer 2 blockchain for Shiba Inu, saw a steep drop in transactions of 97%.
• SHIB’s price has increased by 10% over the past month, maintaining its market rank at 12th with a cap of $14.6 billion.

Shibarium, the layer 2 blockchain that underpins the popular Shiba Inu coin (SHIB), is seeing a huge drop in transaction activity.

For about a month now, trading volumes fell dramatically by almost 97%. This decline has triggered a review of the state of Shibarium and its potential impact on the price of SHIB.

Despite these challenges, the overall trading volume on Shibarium since its launch last August reflects a total of 417,479,277 transfers, so there is a slow but steady growth in activity, year over year.

A closer look at the fall

The peak of transactions on Shibarium reached an all-time high of 562,990 daily transactions on April 17. Today, that number has dropped to just 11.

Source: Shibariumscan.io

Shiba Inu’s price at press time stood at $0.0000248, with SHIB maintaining its position as the 12th ranked cryptocurrency by market cap, which was around $14.6 billion at press time. publication.

Despite the slowdown in transactions, SHIB has seen a 10% price increase over the past month and a modest 2.44% rise over the past seven days.

These price movements tell us that investor sentiment may still be relatively bullish on the second largest coin.

At press time, market sentiment towards the Shiba Inu, as indicated by technical indicators, remained extremely bullish with a bullish rate of 83%. rating.

Additionally, the Fear and Greed Index has a score of 73, filed under “Greed”. The bulls were still in charge.

How is SHIB now?

Change machine data showed that there was a 19.24% drop in trading volume, coupled with a slight 1.58% drop in open interest.

This reflects reduced trading activity and a potential decline in short-term interest among traders.

Source: Coinglass

The recent market activity for SHIB demonstrates a tug-of-war between the bulls and bears, as evidenced by inconsistent trading volumes and uncertain market sentiment.

Read Shiba Inu (SHIB) Price Prediction 2024-2025

Given the current inconsistency and volatility shown in the chart, SHIB may continue to experience fluctuations with a slight bearish bias in the short term.

Investors and traders should watch for either an extended break below the 0.00002475 support or a rebound that breaks above the recent high for clearer direction.

Source: TradingView